§ Mr. Bowen Wellsasked the Lord Privy Seal what changes in existing financial institutions he will support in discussions on implementing the objectives of the Brandt Commission report.
§ Mr. HurdThe proposals contained in the Brandt report are now being discussed within the framework of the international financial institutions. There have already been substantial changes which Government have supported, along the lines of the recommendations of the report.
In the International Monetary Fund the conditionality guidelines have been amended to take account of domestic social and political factors; members' quotas, which are the basis for borrowing rights, have recently been increased by one half, and a new policy of enlarged access to the fund's resources under adjustment programmes has been introduced. A new interest subsidy account for developing countries has also been agreed in principle.
In the World Bank, the Government have supported the general capital increase, which will double the Bank's capital to about $80 billion, as well as the Bank's new quick-disbursing structural adjustment lending programme. We have also pledged £555 million over three years to the latest replenishment of the International Development Association.
Further proposals contained in the Brandt report are under discussion. These include an IMF cereals facility, further allocations of SDRs, an "SDR link" between allocations and development needs, and the possibility of a World Bank energy affiliate. The Government will make a constructive contribution to the continuing international discussions on these matters.